03-14-2022, 02:05 PM
Prosus N.V. ($PRX.AS) $160 billion valuations, real market cap a lot lower than onli
<!-- SC_OFF --><div class="md"><p>Prosus N.V. ($<a href="https://PRX.AS">PRX.AS</a>) is a technology investment company, with it largest holding being Tencent. <strong>Tencent</strong> is one of the big tech companies of China. This is by far their largest position. <strong>Different outlets have stated that Monish Pabrai bought Prosus</strong>. Of course, the focus should not be on the fact that such an investor has bought the stock. </p> <p>The very interesting thing is that Prosus is trading at a big discount of the value of the Tencent shares they hold. It is mainly interesting because it is a big difference, some difference is not weird because you can not decide what they sell and hold. The CEO has announced they will not reduce their position for three years.</p> <p>Even more interesting is that online the shares outstanding are wrong, with that the market cap. Yahoo Finance high overestimates the market cap of Prosus N.V. ($<a href="https://PRX.AS">PRX.AS</a>), even google. This is caused by the fact that Prosus owns a lot of shares in Naspers and Naspers in Prosus, they also share a board. Because of this you have cross shares, Prosus owns shares of itself due to Naspers. I was referenced to the source of their shares outstanding here: <a href="https://www.prosus.com/news/investors-shareholder-information/">https://www.prosus.com/news/investors-shareholder-information/</a>, <strong>after I emailed their investor relations.</strong> Since with google searching, this page was not easily found. </p> <p>With valuing Tencent, Prosus can be conservatively valued by just looking at the Tencent stake. They have $12 billion in liabilities. The value of their other assets widely covers this, these are in part ventures, food delivery, fintech, and classifieds. You could argue that these are highly valued in this environment, you could argue tech is in a bit of a bubble. This gets taken into account in the <strong>$160 billion valuation</strong>: <a href="https://www.financialstockdata.com/prosus_write_up">https://www.financialstockdata.com/prosus_write_up</a> . The focus is on Tencent, CEO's share activity, and showing their other assets for your own judgment. </p> <p>What do you think about Prosus, and such types stock? I can vaguely remember Peter Lynch had an example of this in one up of Wallstreet, Does anyone know about this?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/fundamentals4long"> /u/fundamentals4long </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/tdbeaq/prosus_nv_prxas_160_billion_valuations_real/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/tdbeaq/prosus_nv_prxas_160_billion_valuations_real/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Prosus N.V. ($<a href="https://PRX.AS">PRX.AS</a>) is a technology investment company, with it largest holding being Tencent. <strong>Tencent</strong> is one of the big tech companies of China. This is by far their largest position. <strong>Different outlets have stated that Monish Pabrai bought Prosus</strong>. Of course, the focus should not be on the fact that such an investor has bought the stock. </p> <p>The very interesting thing is that Prosus is trading at a big discount of the value of the Tencent shares they hold. It is mainly interesting because it is a big difference, some difference is not weird because you can not decide what they sell and hold. The CEO has announced they will not reduce their position for three years.</p> <p>Even more interesting is that online the shares outstanding are wrong, with that the market cap. Yahoo Finance high overestimates the market cap of Prosus N.V. ($<a href="https://PRX.AS">PRX.AS</a>), even google. This is caused by the fact that Prosus owns a lot of shares in Naspers and Naspers in Prosus, they also share a board. Because of this you have cross shares, Prosus owns shares of itself due to Naspers. I was referenced to the source of their shares outstanding here: <a href="https://www.prosus.com/news/investors-shareholder-information/">https://www.prosus.com/news/investors-shareholder-information/</a>, <strong>after I emailed their investor relations.</strong> Since with google searching, this page was not easily found. </p> <p>With valuing Tencent, Prosus can be conservatively valued by just looking at the Tencent stake. They have $12 billion in liabilities. The value of their other assets widely covers this, these are in part ventures, food delivery, fintech, and classifieds. You could argue that these are highly valued in this environment, you could argue tech is in a bit of a bubble. This gets taken into account in the <strong>$160 billion valuation</strong>: <a href="https://www.financialstockdata.com/prosus_write_up">https://www.financialstockdata.com/prosus_write_up</a> . The focus is on Tencent, CEO's share activity, and showing their other assets for your own judgment. </p> <p>What do you think about Prosus, and such types stock? I can vaguely remember Peter Lynch had an example of this in one up of Wallstreet, Does anyone know about this?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/fundamentals4long"> /u/fundamentals4long </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/tdbeaq/prosus_nv_prxas_160_billion_valuations_real/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/tdbeaq/prosus_nv_prxas_160_billion_valuations_real/">[comments]</a></span>Kind Regards R